There are lots of different deals available to suit different domestic
consumption habits, so you can pick and choose the package that offers
you the best value for money. For example, people who don't use much
energy ? perhaps individuals living alone ? may find it cheaper to opt
for a package with no standing charge (which charges a higher price per
unit). Often money can be saved by taking both gas and electricity from
the same supplier (often referred to as ?dual fuel? supply).
Alternatively, some companies offer deals such as fixed or capped rates
for a specified period, just like mortgage rates. As the energy
market is prone to price fluctuations, this could save you money. A fixed rate
is one that stays the same no matter what the price increases are, so
if there is a price rise above your agreed fixed rate you'll save
money, but on the other hand if the price of energy drops below your
fixed rate you'll lose out. A capped rate is one that may fluctuate but
will not go above a certain price.
If you've never changed supplier, you're likely to benefit from a
significant saving on your first switch. However, don't just stick to
the same supplier once you've made the move. They all change their
deals frequently so by shopping around every so often you can ensure
that you're always getting the best deal. It's so easy to switch that
saving money on energy is really no hassle.

To switch, simply look around for a better deal. There are some helpful
and informative websites that allow you to compare the latest deals
from a variety of suppliers and can take care of the switch on your
behalf, often without a fee ? such as www.uswitch.com or
www.simplyswitch.com. If you're doing it yourself, just contact your
chosen new supplier and your current supplier to inform them and give
them your meter readings, and you'll receive your final bill from your
current supplier. If you have a direct debit with your current
supplier, remember to cancel it after you have settled the final bill.
Most suppliers require you to give at least 28 days? notice of
cancellation, but very few will charge a cancellation fee (unless, for
example, you have signed up for a fixed or capped rate package and are
pulling out before the end of the specified period). If you're in debt
to your current supplier, you'll need to clear any outstanding bills
before you'll be able to change. The change will be seamless ? there
will be no interruption in your supply as the same infrastructure
(pipes, meters, wires, etc) is used. You'll simply receive a final bill
from your current supplier, followed in the next bill period by a bill
from your new supplier.

Money-saving isn't the only reason for switching, though. Many people
change supplier for better customer service, or for environmental
reasons.

Some energy companies use renewable sources of energy such as wind
farms or hydroelectric power, and some have schemes in which your bill
contributes towards the funding of environmental projects such as the
planting of trees. Energy generated from renewable sources isn't
currently available in all parts of the country (only about 4% of the
National Grid's energy supply comes from green sources), so you may not
be able to go completely green with your energy supply. However,
alternative packages are available in which you receive your energy
supply from conventional sources but your energy supplier agrees to
contribute a certain amount of energy made from renewable sources to
the National Grid on your behalf depending on your consumption.

Getting the cheapest deal isn't the only way to save money though. You
can cut down your energy use and do your bit for the environment at the
same time by making your house more fuel-efficient. Insufficient
insulation is where most houses lose energy unnecessarily. Check that
your loft is well insulated, to a depth of at least 250 mm. If you have
cavity walls, have them insulated too, as well as your pipes and hot
water tank. And seal any nooks and crannies such as gaps in draughty
windows, doors, floorboards and letterboxes.

Changing your habits at home can also make a big difference. Keep doors
and windows closed to retain the heat. Switch off the lights when you
leave a room. Don't leave electrical equipment such as TVs or hi-fis on
standby when not in use ? switch them off fully. Boil just as much
water as you need to in the kettle. Only put on the washing machine or
dishwasher when you have a full load. Have your curtains lined and keep
them drawn at night. Even wear a cosy jumper around the house during
the winter!

Changing your supplier should be straightforward and hassle-free. If
you have any problems, though, or if you have a complaint that you have
not managed to resolve with your supplier directly, then contact
Energywatch (www.energywatch.org.uk), the independent energy watchdog
representing consumers, or OFGEM (www.ofgem.gov.uk), the government
regulatory body that was set up when the market was deregulated in 1999
to ensure that energy companies are run fairly and effectively and that
consumers get the best value for money in a competitive market.